Despite rumors of NVIDIA halting the production of H20 AI chips, it seems like new orders have been placed at TSMC, amid the strong demand coming from Chinese customers.
NVIDIA's New H20 AI Orders Comes After Strong Chinese Demand, Enough For Several Quarters to Come
NVIDIA seems to have gotten the "green signal" to sell chips in China and, more importantly, to re-open a vital revenue stream. The company recent announced that the Trump administration has lifted the chip export controls on China, which would open up H20 shipments to China. However, there was skepticism in the markets on whether Team Green would produce new H20 chips, considering supply chain complexities, but according to a report by Reuters, NVIDIA is looking to get new inventory on hands for Chinese AI customers.
It is now claimed that NVIDIA has placed an order for 300,000 units of the H20 AI chip at TSMC, and the order will be redirected towards the massive demand Team Green currently sees in China. It is estimated that with these orders, the company's total H20 inventory would come around 600,000 to 700,000 H20 chips, which, based on what we know, would be sufficient for at least two or three quarters of NVIDIA's business in the region.
For now, it appears that Team Green is conducting a "market survey" to develop order volume forecasts for its H20 AI chip, given that this solution has been offered to the domestic markets for several quarters now. And since computing demand is rising massively, Beijing would need more capable solutions, and that's where NVIDIA will likely target next, as, according to our estimates, we anticipate new "Blackwell-based" B20 AI chip, and GeForce RTX 6000D GPUs to be released in China by year-end, or the first quarter of 2026, depending upon the US's ease in export controls.
The NVIDIA China story is still ongoing, and it seems like Jensen cannot stay out of the domestic market for too long, and with that motive, he has managed to change the stance of the Trump administration, which is now determined to populate China with American AI products.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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